I seek your guidance on a matter regarding ST applicability.
Many of us free lance trainers conduct 1-3 days programs on developmental HR topics e.g communication skills, creativity etc. Some conduct these as in-house programs in the premises of the client. Others may conduct these as open programs in hotels etc. In both cases, I have noticed that most trainers include the 10.2% ST on their basic fees.
Is ST really applicable in such cases? In the list of taxable services, I see two services under which such programs may be considered for eligibility- Management consultancy and Commercial coaching and training. From the definitions of services as given in the act, I notice that such programs are NOT management consultancy. Even while checking them against the criterion of comercial coaching and training, it is seen that commercial coaching is that which makes a person eligible for some certificate etc. Another sub clause in some circulars clearly states that ST is appliable to only those commercial coaching/training programs where the provider has an training establishment of own and is NOT applicable if he/she provides the training at the premises of the client ( unless sent there on behalf of another service provider who does have a training establishment of his own ).
From this,it seems that ST is not applicable in such programs. However, I may have misunderstood or missed some clause.BTW, this is also the informal understanding of some officials of the ST ( Excise ) directorate in Mumbai.
I seek guidance from those who have some authoritative
knowledge on this issue. Is the ST applicable in such cases or not?
Best wishes 13th January 2005 From India, Mumbai